On dissolution, unrecorded liabilities,

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Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:

On dissolution, unrecorded liabilities, when paid are shown in:

Options:

Debit of Realisation Account

Debit of Bank Account

Credit of Realisation Account

Debit of Revaluation Account

Correct Answer:

Debit of Realisation Account

Explanation:

The correct answer is option 1- Debit of Realisation Account.

For settlement of any unrecorded liability-
Realisation A/c Dr.
To Bank A/c
(Payment of unrecorded liability)